INTERIM REPORT January – March 2012

Net sales totaled SEK 944k (455k), which is an increase of 107% compared with
the first quarter of 2011.

Loss after financial items was SEK 4,008k (loss:
SEK 3,469k).

Loss after tax was SEK 3,970k (loss: 3,458k).

Earnings per
share totaled SEK -0.06 (-0.08).

Cash and cash equivalents at the end of the
period amounted to SEK 3,959k (1,008k).

Genovis’ nanoparticle project has
been published in the prestigious Journal of Nuclear Medicine.

Rights
issue

On March 20, the Annual General Meeting adopted a proposal for a rights
issue to existing shareholders in which two (2) existing shares entitle the
holder to subscription for one (1) new share at a subscription price of SEK
3.50/ share. The rights issue, which is fully guaranteed, will raise SEK 12.1
million for Genovis. The AGM also resolved on a private placement to LMK
Ventures AB, which can raise an additional SEK 5m for the Company.

Changes in
Board of Directors

Two new directors were elected at the Annual General
Meeting, Peter Ragnarsson and Erik Walldén.

Change in share capital

On
March 20, 2012, the AGM resolved to reduce share capital by SEK 24,925,363.2
which means a new par value of SEK 0.04.

Events after the end of the
period

Change number of shares

On March 20, 2012, the AGM resolved to
reduce the number of shares in the Company by consolidating the shares in the
ratio 1:10, which entails that every ten shares will be consolidated into one
share. As a result of the change, share capital shall amount to a minimum of two
million four hundred thousand Swedish kronor (SEK 2,400,000) and a maximum of
nine million six hundred thousand Swedish kronor (SEK 9,600,000) and the number
of shares shall be a minimum of six million (SEK 6,000,000) and a maximum of
twenty-four million (24,000,000).

The record date for consolidation was April
10.
COMMENTS FROM THE CEO

Spring has gotten off to a good start for Genovis. The
trend from last year continues, with a strong increase in sales of products from
the protein engineering portfolio. Meanwhile, development of the nano portfolio
has made great strides. Several scientific papers have been published
illustrating the benefits of Genovis’ nanoparticles, and we are following our
development plan toward a launch in the third quarter of this year.

One year
ago, we launched new product concepts from the protein engineering portfolio:
FragIT, DeGlycIT and FragIT kits. The new products are intended to simplify and
standardize work for our customers, making it easier for them to scale up their
processes. They are marketed at a higher price per test, but save working hours
for the customer. We are now beginning to see results and so far we can say that
customers want the new products and the number of products sold in that category
will increase more than the average increase for all products. During the
quarter we increased sales from the protein engineering portfolio by about 150%
compared with the same quarter last year and revenues from the new products now
account for 35% of income from the protein engineering portfolio.

We are
planning the next launch in the protein engineering portfolio for June. The time
is now right for a high-throughput product that makes it possible to handle
hundreds of samples quickly and reliably. We have plenty of work left to do in
the market. We want to reach more customers in our target market and develop
product concepts that can help to increase volumes with existing customers. It
is an exciting challenge to try to reach as many of our potential customers as
possible. To do so we are expanding our marketing campaigns in terms of both
quantity and new formats, and I expect 2012 expenses to increase 15% as a result
of these initiatives. We are pleased that we are being helped along by our
customers, who are publishing the excellent results they achieve with our
products. Recognition by customers also facilitates the process of finding the
right partners that can expand our marketing activities to more geographic areas
than those we are covering today. The process is ongoing and is obviously a high
-priority strategic measure.

Lund in April

Sarah Fredriksson
For more information, please contact: Sarah Fredriksson, CEO, Genovis AB Tel:
4646 -101235 sarah.fredriksson@genovis.com
ABOUT GENOVIS

Genovis develops and sells innovative technologies from two
unique product portfolios. The first includes enzymes that facilitate
development and quality control for applications such as antibody-based drugs.
The products launched to date are aimed at customers who work with development
of drugs, new diagnostic methods and basic research.

The second consists of
nanotechnology in new contrast agents and focuses on design, production and
characterization of nanostructures as contrast agents in medical imaging. The
nanostructures and methods that Genovis focuses on can also be used as carriers
of various substances in the development of new drug delivery methods. The
projects are mainly in-house, but also include collaborations with research
groups, including at Lund University.

Genovis shares are listed on the First
North OMX Nordic Exchange and Thenberg Fondkommission is our certified advisor.